SAVINGS SPREE: ‘Anything helps,’ cry shoppers over instant price drop on groceries after biggest tax cut in state history

According to THE SUN, Oklahoma shoppers will benefit from reduced grocery costs following the state’s decision to eliminate its 4.5% grocery tax. The tax cut, which took effect on August 29, is part of a legislative effort to ease the financial burden on residents amid rising inflation.

Tax Cut Details

The grocery tax cut applies to most food products, including staples like dairy, canned foods, and baby food. However, prepared foods such as rotisserie chicken, hot deli soups, and alcoholic beverages will still be taxed. State officials anticipate that the measure will save shoppers hundreds of dollars annually on their grocery bills.

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Senate Leader Greg Treat praised the tax cut as a significant relief for Oklahomans, calling it the largest tax cut in state history. “This legislation reflects our commitment to making life more affordable for all Oklahomans,” Treat said in a press release. “The grocery tax is a regressive tax that impacts everyone every time they buy groceries.”

Despite the tax cut, some shoppers have not noticed an immediate impact. Don Murray, a shopper in Oklahoma City, expressed disappointment that the savings did not extend to items he frequently purchases, such as pet food. “We already pay so much in taxes,” Murray told The Oklahoman. “Anything helps. It’s definitely going to help in the long run.”

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Other States and Grocery Tax Developments

• Illinois: Illinois will also eliminate its grocery tax as part of the 2025 budget. The state previously suspended the 1% tax on groceries from July 2022 to June 2023. With the tax removal, the average family of four could save up to $130 on their grocery bills. Governor JB Pritzker supported the move, stating, “It’s one more regressive tax we just don’t need. If it reduces inflation for families from 4% to 3%, even if it only puts a few hundred bucks back in families’ pockets, it’s the right thing to do.”
• Concerns About Merger: Shoppers are also wary of potential price increases due to a proposed merger between Kroger and Albertsons. Some fear that the consolidation could lead to higher prices at the supermarket.
• Costco Savings Tip: For those looking to save money on groceries, a Costco member shared a strategy to maximize savings with a monthly deal.